In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on Lowe's Companies (NYSE: LOW), and raised its price target from $28.00 to $37.00.

BMO Capital noted, “We are increasing our FY2012 continuing EPS estimate to $1.72 from $1.65 on the better-than-expected 3Q12 and an increase in our 4Q12 EPS to $0.22 from $0.18. Our FY2013 EPS moves to $2.06 from $1.96 on the increase in our FY2012 estimate as well as a moderately higher gross margin rate assumption that now seems more likely to be achieved from the company's cost-out initiatives...We maintain our Market Perform as the stock's now trades at a 9% discount to Home Depot's multiple of 18.3x even though LOW's five-year target EBIT margin is 20% below Home Depot's.”